1. Cash for comfort
Despite the record low returns on offer, cash still has an important part to play as the right home for money that might be needed in the short-term.
Holding sufficient funds in cash also avoids the need to sell long-term investments at a bad time, such as after a sudden fall in market value, something that investors need to remain wary of in the months and years to come as economic and political uncertainty looks set to continue. How much cash to keep on stand-by depends on each individual’s circumstances and attitude to risk.
2. The long view
It’s important to remember that your financial needs will only be met by taking a long-term view of your investment strategy. It’s impossible to second guess the markets in the short term. Making hasty decisions based on rapidly changing market fluctuations is a risky strategy.